Australia's Fairfax Media group has abandoned threats to lock out journalists and take legal action against them over a three-day strike following a breakthrough in negotiations. Journalists at newspapers such as the Sydney Morning Herald, The Age and the Australian Financial Review returned to work after taking industrial action over a pay dispute and opposition to large-scale job cuts.

Though the journalists remain angry over company plans to shed 550 jobs, including 165 editorial posts, their union they are expected to accept the company's revised pay offer in a vote later this week.

There are rumours that 50 editorial staff have already volunteered for redundancy. (Sources: The Australian; private information)